Overtime & Working Hours in Malaysia 2026: EA 1955 Rules, Pay Rates & Limits

By SuperJobs Team · 7 min read
Quick Answer: The legal working hours in Malaysia are 45 hours per week (8 hours per day), with overtime capped at 104 hours per month and paid at 1.5x–3x the hourly rate for employees earning RM 4,000 or below. This guide explains the overtime rules, rest day pay, and public holiday rates under the Employment Act.
Understanding overtime and working hours regulations is crucial for both employees and employers in Malaysia. The Employment Act 1955 sets clear limits on working hours and mandates premium pay for overtime work.
Standard Working Hours (Section 60A)
| Parameter | Limit |
|---|---|
| Maximum hours per day | 8 hours |
| Maximum hours per week | 45 hours |
| Maximum consecutive hours | 5 hours without a break of at least 30 minutes |
| Spread-over period | Working hours + intervals must not exceed 10 hours in a day |
Overtime Pay Rates (Section 60A(3))
| When Overtime is Worked | Pay Rate |
|---|---|
| Normal working day | 1.5x hourly rate |
| Rest day (normal hours) | 1.0x additional pay (2.0x total if overtime on rest day) |
| Rest day (overtime beyond normal) | 2.0x hourly rate |
| Public holiday | 2.0x hourly rate (on top of holiday pay) |
| Public holiday (rest day) | 3.0x hourly rate |
Calculating Overtime Pay
Ordinary rate of pay (ORP) = Monthly salary ÷ 26 ÷ 8 (per hour)
Example: RM 3,000 salary → ORP = RM 3,000 ÷ 26 ÷ 8 = RM 14.42/hour
Overtime on a normal day = RM 14.42 × 1.5 = RM 21.63/hour
Who is Covered
The 2022 amendments expanded the Employment Act's coverage:
| Category | Overtime Protection |
|---|---|
| Employees earning ≤ RM 4,000/month | Full overtime protection (mandatory OT pay) |
| Employees earning > RM 4,000/month | Protected for rest days, public holidays, termination - but overtime pay may be governed by contract |
| Manual labourers | Full protection regardless of salary |
Maximum Overtime
| Parameter | Limit |
|---|---|
| Maximum overtime per month | 104 hours |
| Exception | Director General of Labour may approve variations for specific industries |
Rest Day (Section 59)
- Every employee is entitled to at least 1 rest day per week
- Employer must set the rest day in the contract
- If required to work on a rest day, overtime rates apply
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?Frequently Asked Questions
What are the legal working hours in Malaysia?
Under the Employment Act 1955 (amended 2022), the standard working hours are 8 hours per day or 45 hours per week, reduced from the previous 48 hours per week effective 1 January 2023. Employees cannot be required to work more than 5 consecutive hours without a rest break of at least 30 minutes.
How is overtime pay calculated in Malaysia?
Overtime pay in Malaysia is calculated at 1.5 times the hourly rate for work beyond normal hours on working days. Work on rest days is paid at up to 2 times the rate, and work on public holidays is paid at up to 3 times the hourly rate. These rates apply to employees earning RM 4,000 or below per month.
Is there a maximum overtime limit in Malaysia?
Yes, the Employment Act limits overtime to 104 hours per month for employees earning RM 4,000 or below. Standard working hours are 45 hours per week (reduced from 48 since January 2023). Employers need a permit from the Labour Department to exceed the 104-hour cap.
Do managers and executives get overtime pay in Malaysia?
The Employment Act 2022 amendments extended coverage to all employees regardless of salary for most protections. However, overtime pay, rest day pay, and public holiday pay provisions only apply to employees earning RM 4,000 or below per month. Higher-earning employees' overtime rights depend on their employment contract.
Can my employer force me to work overtime in Malaysia?
An employer can require reasonable overtime if it is specified in the employment contract or if there is a genuine business need. However, the overtime must not exceed legal limits and must be compensated at the prescribed rates under the Employment Act.